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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.08
ADS's Cash to Debt is ranked lower than
92% of the 744 Companies
in the Global Business Services industry.

( Industry Median: 1.75 vs. ADS: 0.08 )
Ranked among companies with meaningful Cash to Debt only.
ADS' s 10-Year Cash to Debt Range
Min: 0.03  Med: 0.17 Max: N/A
Current: 0.08
Equity to Asset 0.10
ADS's Equity to Asset is ranked lower than
93% of the 688 Companies
in the Global Business Services industry.

( Industry Median: 0.49 vs. ADS: 0.10 )
Ranked among companies with meaningful Equity to Asset only.
ADS' s 10-Year Equity to Asset Range
Min: -0.01  Med: 0.26 Max: 0.46
Current: 0.1
-0.01
0.46
Interest Coverage 4.22
ADS's Interest Coverage is ranked lower than
86% of the 494 Companies
in the Global Business Services industry.

( Industry Median: 44.88 vs. ADS: 4.22 )
Ranked among companies with meaningful Interest Coverage only.
ADS' s 10-Year Interest Coverage Range
Min: 0.56  Med: 4.22 Max: 9999.99
Current: 4.22
0.56
9999.99
F-Score: 7
Z-Score: 1.69
M-Score: -2.24
WACC vs ROIC
8.90%
7.41%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 19.37
ADS's Operating margin (%) is ranked higher than
83% of the 739 Companies
in the Global Business Services industry.

( Industry Median: 5.51 vs. ADS: 19.37 )
Ranked among companies with meaningful Operating margin (%) only.
ADS' s 10-Year Operating margin (%) Range
Min: 0.42  Med: 20.71 Max: 26.76
Current: 19.37
0.42
26.76
Net-margin (%) 8.89
ADS's Net-margin (%) is ranked higher than
73% of the 741 Companies
in the Global Business Services industry.

( Industry Median: 3.84 vs. ADS: 8.89 )
Ranked among companies with meaningful Net-margin (%) only.
ADS' s 10-Year Net-margin (%) Range
Min: -5.12  Med: 8.25 Max: 11.6
Current: 8.89
-5.12
11.6
ROE (%) 31.67
ADS's ROE (%) is ranked higher than
91% of the 709 Companies
in the Global Business Services industry.

( Industry Median: 8.33 vs. ADS: 31.67 )
Ranked among companies with meaningful ROE (%) only.
ADS' s 10-Year ROE (%) Range
Min: -10.76  Med: 17.26 Max: 316.77
Current: 31.67
-10.76
316.77
ROA (%) 2.98
ADS's ROA (%) is ranked lower than
55% of the 752 Companies
in the Global Business Services industry.

( Industry Median: 3.63 vs. ADS: 2.98 )
Ranked among companies with meaningful ROA (%) only.
ADS' s 10-Year ROA (%) Range
Min: -2.49  Med: 3.79 Max: 5.99
Current: 2.98
-2.49
5.99
ROC (Joel Greenblatt) (%) 14.72
ADS's ROC (Joel Greenblatt) (%) is ranked lower than
59% of the 728 Companies
in the Global Business Services industry.

( Industry Median: 24.08 vs. ADS: 14.72 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
ADS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 14.78  Med: 32.51 Max: 117.67
Current: 14.72
14.78
117.67
Revenue Growth (3Y)(%) 15.70
ADS's Revenue Growth (3Y)(%) is ranked higher than
83% of the 568 Companies
in the Global Business Services industry.

( Industry Median: 4.70 vs. ADS: 15.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
ADS' s 10-Year Revenue Growth (3Y)(%) Range
Min: -6.1  Med: 15.70 Max: 27.3
Current: 15.7
-6.1
27.3
EBITDA Growth (3Y)(%) 10.60
ADS's EBITDA Growth (3Y)(%) is ranked higher than
63% of the 464 Companies
in the Global Business Services industry.

( Industry Median: 5.60 vs. ADS: 10.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
ADS' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 7.1  Med: 24.95 Max: 203.7
Current: 10.6
7.1
203.7
EPS Growth (3Y)(%) 14.20
ADS's EPS Growth (3Y)(%) is ranked higher than
63% of the 425 Companies
in the Global Business Services industry.

( Industry Median: 6.50 vs. ADS: 14.20 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
ADS' s 10-Year EPS Growth (3Y)(%) Range
Min: -20.6  Med: 24.40 Max: 74.2
Current: 14.2
-20.6
74.2
» ADS's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

ADS Guru Trades in Q3 2014

Paul Tudor Jones 2,934 sh (New)
Jim Simons 77,600 sh (New)
Ray Dalio 25,594 sh (+78.06%)
Pioneer Investments 22,678 sh (unchged)
Columbia Wanger 525,000 sh (unchged)
Ronald Muhlenkamp 171,675 sh (unchged)
RS Investment Management 20,167 sh (-26.99%)
» More
Q4 2014

ADS Guru Trades in Q4 2014

Joel Greenblatt 109,629 sh (New)
Steven Cohen 9,400 sh (New)
Jim Simons 82,316 sh (+6.08%)
RS Investment Management 20,826 sh (+3.27%)
Paul Tudor Jones Sold Out
Pioneer Investments 22,460 sh (-0.96%)
Ray Dalio 24,694 sh (-3.52%)
Columbia Wanger 380,900 sh (-27.45%)
Ronald Muhlenkamp 121,330 sh (-29.33%)
» More
Q1 2015

ADS Guru Trades in Q1 2015

Paul Tudor Jones 59,735 sh (New)
Jim Simons Sold Out
Ray Dalio Sold Out
Steven Cohen Sold Out
Columbia Wanger Sold Out
Ronald Muhlenkamp 121,200 sh (-0.11%)
Pioneer Investments 17,626 sh (-21.52%)
RS Investment Management 15,606 sh (-25.06%)
Joel Greenblatt 73,082 sh (-33.34%)
» More
Q2 2015

ADS Guru Trades in Q2 2015

Ronald Muhlenkamp 121,215 sh (+0.01%)
Paul Tudor Jones Sold Out
RS Investment Management Sold Out
Pioneer Investments 17,551 sh (-0.43%)
Joel Greenblatt 45,031 sh (-38.38%)
» More
» Details

Insider Trades

Latest Guru Trades with ADS

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Top Ranked Articles about Alliance Data Systems Corp

Ronald Muhlenkamp Makes Small Changes in Composition of His Top 10 Stakes
Ronald Muhlenkamp (Trades, Portfolio), founder and president of Muhlenkamp & Company, Inc., and portfolio manager for the company's mutual fund, has a reputation for staying with stakes for a long time. In the second quarter, he may have laid the foundation for another reputation – making small adds and reductions to his top holdings. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 30.51
ADS's P/E(ttm) is ranked lower than
74% of the 522 Companies
in the Global Business Services industry.

( Industry Median: 20.00 vs. ADS: 30.51 )
Ranked among companies with meaningful P/E(ttm) only.
ADS' s 10-Year P/E(ttm) Range
Min: 8.94  Med: 26.29 Max: 39.29
Current: 30.51
8.94
39.29
Forward P/E 14.60
ADS's Forward P/E is ranked lower than
52% of the 258 Companies
in the Global Business Services industry.

( Industry Median: 14.90 vs. ADS: 14.60 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 30.80
ADS's PE(NRI) is ranked lower than
74% of the 522 Companies
in the Global Business Services industry.

( Industry Median: 19.70 vs. ADS: 30.80 )
Ranked among companies with meaningful PE(NRI) only.
ADS' s 10-Year PE(NRI) Range
Min: 7.72  Med: 25.28 Max: 39.26
Current: 30.8
7.72
39.26
P/B 7.98
ADS's P/B is ranked lower than
91% of the 679 Companies
in the Global Business Services industry.

( Industry Median: 2.11 vs. ADS: 7.98 )
Ranked among companies with meaningful P/B only.
ADS' s 10-Year P/B Range
Min: 2.88  Med: 9.57 Max: 175.47
Current: 7.98
2.88
175.47
P/S 2.64
ADS's P/S is ranked lower than
71% of the 721 Companies
in the Global Business Services industry.

( Industry Median: 1.20 vs. ADS: 2.64 )
Ranked among companies with meaningful P/S only.
ADS' s 10-Year P/S Range
Min: 0.81  Med: 2.52 Max: 4.41
Current: 2.64
0.81
4.41
PFCF 13.48
ADS's PFCF is ranked higher than
62% of the 401 Companies
in the Global Business Services industry.

( Industry Median: 17.00 vs. ADS: 13.48 )
Ranked among companies with meaningful PFCF only.
ADS' s 10-Year PFCF Range
Min: 3.71  Med: 12.38 Max: 200.25
Current: 13.48
3.71
200.25
POCF 11.74
ADS's POCF is ranked higher than
52% of the 503 Companies
in the Global Business Services industry.

( Industry Median: 12.67 vs. ADS: 11.74 )
Ranked among companies with meaningful POCF only.
ADS' s 10-Year POCF Range
Min: 3.4  Med: 10.68 Max: 47.52
Current: 11.74
3.4
47.52
EV-to-EBIT 21.63
ADS's EV-to-EBIT is ranked lower than
73% of the 545 Companies
in the Global Business Services industry.

( Industry Median: 14.12 vs. ADS: 21.63 )
Ranked among companies with meaningful EV-to-EBIT only.
ADS' s 10-Year EV-to-EBIT Range
Min: 6.3  Med: 16.15 Max: 25.6
Current: 21.63
6.3
25.6
PEG 1.78
ADS's PEG is ranked higher than
55% of the 229 Companies
in the Global Business Services industry.

( Industry Median: 2.06 vs. ADS: 1.78 )
Ranked among companies with meaningful PEG only.
ADS' s 10-Year PEG Range
Min: 0.27  Med: 0.94 Max: 2.91
Current: 1.78
0.27
2.91
Shiller P/E 39.49
ADS's Shiller P/E is ranked lower than
80% of the 352 Companies
in the Global Business Services industry.

( Industry Median: 22.99 vs. ADS: 39.49 )
Ranked among companies with meaningful Shiller P/E only.
ADS' s 10-Year Shiller P/E Range
Min: 12.26  Med: 37.44 Max: 72.82
Current: 39.49
12.26
72.82
Current Ratio 2.20
ADS's Current Ratio is ranked higher than
69% of the 701 Companies
in the Global Business Services industry.

( Industry Median: 1.56 vs. ADS: 2.20 )
Ranked among companies with meaningful Current Ratio only.
ADS' s 10-Year Current Ratio Range
Min: 0.92  Med: 1.30 Max: 2.65
Current: 2.2
0.92
2.65
Quick Ratio 2.20
ADS's Quick Ratio is ranked higher than
72% of the 701 Companies
in the Global Business Services industry.

( Industry Median: 1.43 vs. ADS: 2.20 )
Ranked among companies with meaningful Quick Ratio only.
ADS' s 10-Year Quick Ratio Range
Min: 0.92  Med: 1.30 Max: 2.65
Current: 2.2
0.92
2.65
Days Sales Outstanding 34.82
ADS's Days Sales Outstanding is ranked higher than
76% of the 612 Companies
in the Global Business Services industry.

( Industry Median: 57.90 vs. ADS: 34.82 )
Ranked among companies with meaningful Days Sales Outstanding only.
ADS' s 10-Year Days Sales Outstanding Range
Min: 33.37  Med: 41.85 Max: 185.97
Current: 34.82
33.37
185.97

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 1.05
ADS's Price/Projected FCF is ranked higher than
60% of the 387 Companies
in the Global Business Services industry.

( Industry Median: 1.33 vs. ADS: 1.05 )
Ranked among companies with meaningful Price/Projected FCF only.
ADS' s 10-Year Price/Projected FCF Range
Min: 0.54  Med: 0.99 Max: 2.07
Current: 1.05
0.54
2.07
Price/DCF (Earnings Based) 1.09
ADS's Price/DCF (Earnings Based) is ranked higher than
67% of the 55 Companies
in the Global Business Services industry.

( Industry Median: 1.36 vs. ADS: 1.09 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 1.05
ADS's Price/Median PS Value is ranked lower than
52% of the 665 Companies
in the Global Business Services industry.

( Industry Median: 1.07 vs. ADS: 1.05 )
Ranked among companies with meaningful Price/Median PS Value only.
ADS' s 10-Year Price/Median PS Value Range
Min: 0.41  Med: 0.94 Max: 1.61
Current: 1.05
0.41
1.61
Price/Peter Lynch Fair Value 2.43
ADS's Price/Peter Lynch Fair Value is ranked lower than
75% of the 178 Companies
in the Global Business Services industry.

( Industry Median: 1.43 vs. ADS: 2.43 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
ADS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.48  Med: 0.98 Max: 2.81
Current: 2.43
0.48
2.81
Earnings Yield (Greenblatt) (%) 4.61
ADS's Earnings Yield (Greenblatt) (%) is ranked lower than
55% of the 726 Companies
in the Global Business Services industry.

( Industry Median: 5.30 vs. ADS: 4.61 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
ADS' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 3.9  Med: 6.20 Max: 16
Current: 4.61
3.9
16
Forward Rate of Return (Yacktman) (%) 18.26
ADS's Forward Rate of Return (Yacktman) (%) is ranked higher than
68% of the 376 Companies
in the Global Business Services industry.

( Industry Median: 11.42 vs. ADS: 18.26 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
ADS' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 17.4  Med: 31.05 Max: 44.5
Current: 18.26
17.4
44.5

Analyst Estimate

Dec15 Dec16
Revenue(Mil) 6,504 7,307
EPS($) 14.61 17.28
EPS without NRI($) 14.61 17.28

Business Description

Industry: Business Services » Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY » details
Traded in other countries:LID.Germany,
Alliance Data Systems Corp is a provider of data-driven and transaction-based marketing and customer loyalty solutions. It offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, analytics and creative services, direct marketing services and private label and co-brand retail credit card programs. It engaged in facilitating and managing interactions between its clients and their customers through all consumer marketing channels, including in-store, on-line, catalog, mail, telephone and email, and emerging channels such as mobile and social media. The Company captures and analyzes data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. The Company's products and services are reported under three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. It has traditionally marketed and sold its products and services on a stand-alone basis but increasingly market and sell them on an integrated basis. LoyaltyOne includes the Company's Canadian AIR MILES Reward Program. Epsilon provides end-to-end, integrated direct marketing solutions that combine database marketing technology and analytics with a broad range of direct marketing services, including email marketing campaigns. Private Label Services and Credit encompasses credit card processing, billing and payment processing, customer care and collections services for private label retailers as well as private label retail credit card receivables financing, including securitization of the credit card receivables that it underwrites from its private label retail credit card programs. Through its consulting services, the Company analyzes its clients' business, brand and/or products to create customer acquisition and retention strategies and tactics designed to further optimize its clients' customer relationships and marketing return on investment. The Company designs, builds and operates complex consumer marketing databases for large consumer-facing brands such as Hilton HHonors and the Citi ThankYou programs. The Company performs processing services and provides service and maintenance for private label and co-brand credit card programs. It use automated technology for bill preparation, printing and mailing, and also offer consumers the ability to view, print and pay their bills on-line. The Company's client base of more than 1,300 companies consists of large consumer-based businesses, including brands such as Bank of Montreal, Canada Safeway, Shell Canada, AstraZeneca, Hilton, Bank of America, General Motors, Victoria's Secret, Lane Bryant, Pottery Barn, J. Crew and Ann Taylor. The Company competes with marketing services companies, credit card issuers, and data processing companies, as well as with the in-house staffs of its current and potential clients. Federal and state
» More Articles for ADS

Headlines

Articles On GuruFocus.com
Ronald Muhlenkamp Makes Small Changes in Composition of His Top 10 Stakes Aug 06 2015 
ICAP Apr 25 2015 
Weekly 52-Week Highs Highlight: ADS, CHT, A, KYO, LFC Apr 12 2015 
Nike Earnings Top Estimates, Revenues Fall Short Mar 20 2015 
ADS: Earnings Keep Growing, But the Price Remains Range-Bound Feb 25 2015 
Vista Partners Updates Coverage on Accelerize Inc. (Ticker: ACLZ); $3.50 Price Target Jan 28 2015 
Activist Guru Dan Loeb Leaves His Mark in Many Ways Oct 03 2014 
comment on ADS Apr 09 2013 
FV 214 Apr 01 2013 
comment on ADS Mar 14 2013 

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